Canadian Securities Course (CSC) Practice Exam

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Which account includes the exchange of goods between Canadians and foreigners, earnings from individual income, dividends, and transfers for foreign aid?

  1. Capital and financial account

  2. Current account

  3. Natural unemployment rate

  4. Exchange rates

The correct answer is: Current account

The current account includes all financial transactions between a country and other nations, including goods and services, income earned by individuals, and transfer payments for foreign aid. The capital and financial account, while related, specifically refers to the transfer of financial assets such as stocks and bonds. The natural unemployment rate and exchange rates have more to do with a country's economy as a whole rather than specific financial transactions.

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